The value of Bitcoin reached a high of $24,000 per coin last month, which was an increase from its value of around $16,000 at the start of the year. Meanwhile, the Ethereum price has experienced similar fluctuations as the U.S. prepares to reveal its highly anticipated crypto plan.
The Biden administration has been accused of attempting to “silently” ban cryptocurrencies like Bitcoin, Ethereum and others through a plan known as “Operation Choke Point 2.0”. This is a reference to a previous government effort in 2013 to sever undesirable industries from banking services.
According to Nic Carter, a venture capitalist in the Bitcoin and crypto industry, some people in the crypto community view the recent attempts to isolate the crypto sector and break its connection to the banking system as similar to the “little-known” Obama-era program. He expressed these views in a post published by fellow investor Mike Solana on Substack.
Recently, the Federal Reserve declined an application by the crypto bank Custodia to join, raising concerns about whether Protego and Paxos’ applications for national trust bank charters will receive final approval from the Office of the Comptroller of the Currency.
According to Nic Carter, the U.S. government is using the banking sector to execute a coordinated crackdown against the crypto industry. The scope and coordination of the plan, involving numerous financial regulators, has even the most experienced crypto veterans worried about the possibility of crypto businesses being unbanked, stablecoins becoming stranded and unable to transfer funds in and out of crypto, and exchanges being cut off from the banking system.
Market analyst Marcus Sotiriou at digital asset broker GlobalBlock, stated in his email comments that such a move by the U.S. would be a huge mistake and would result in other countries taking the lead in the crucial crypto and blockchain technology revolution.
The Biden administration has emphasized that it is crucial for Congress to increase their efforts in regulating the Bitcoin and crypto market. They have warned that it would be a grave mistake to allow the ties between cryptocurrencies and the broader financial system to become stronger, with warnings of a potential global financial meltdown.
Nic Carter added that the attitude of the Biden administration towards cryptocurrencies has caused many crypto entrepreneurs to wait until 2025 and the potential DeSantis regime for a change in the current situation.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
